How do you know if an FHA loan is right for you?
The Federal Housing Administration (FHA) offers a number of programs that promote home ownership. Because it requires a relatively small down payment, an FHA loan might be the perfect way for you to purchase your first home, or your next home.
FHA home loans are insured against home owner default by the FHA. This protects the lender from financial loss and increases your chances of being accepted. You are charged an upfront mortgage insurance premium that is included in your monthly payment.
It’s not difficult to qualify for an FHA Loan
- You will need a decent credit history, (but it does not have to be excellent).
- You will also need a reasonable debt-to-income ratio.
You will likely be approved for a home loan relative to the market prices of homes in your search area. Mortgage Solutions Financial can help you determine the FHA mortgage limits for your region.
FHA Loan Benefits
- The ability to purchase with a down payment as low as 3.5 percent.
- Lack of prepayment penalties.
- FHA loans may be assumable by another buyer if you decide to sell.
- More relaxed credit qualifications than conventional loans
Contact us today to see if you qualify for an FHA home loan.